drbob

Stocks that Could Benefit from Health Reform

The New Yorker article points out another aspect of why costs are high in certain areas of the country.

Health care is a complex animal and high costs are related to multiple issues, tort reform and physician incentives being two big ones.

Stocks that Could Benefit from Health Reform

On Aug 24 11:26 AM User 476107 wrote:

> Are you kidding!

No, I am not kidding.

>Tort reform would help end frivilous law suits
>and is the moral thing to do. There is a reason
>why attorneys are generally considered in a bad light.

Frivolous lawsuits are not really the problem. The problem is that physicians do not want to be involved in a lawsuit and thus order unnecessary testing to avoid any chance of legal action.

Tort reform is not a separate issue from health care reform. Costs for diagnostic testing will continue to skyrocket until this issue is addressed.

Stocks that Could Benefit from Health Reform

"Tort reform is not the answer either, since according to the nonpartisan CBO, malpractice costs account for a very small percentage of overall spending."

Just go to any ER and you can see the effect of malpractice fears. Our ER's have become CT Triage areas, primarily to avoid malpractice issues and also for expediency. Likewise, doctors order a variety of studies to ensure they do not get sued.

Direct malpractice costs (litigation, judgements, malpractice insurance) are just the tip of the iceberg compared to indirect malpractice costs, most of which includes unnecessary diagnostic testing.

PS: Don't expect the hospitals and diagnostic facilities to complain about all the money being made 'avoiding malpractice'.